| Electronic commerce, or e-commerce, refers to | | | | These could be business to business (B2B), |
| the use of the Internet at any point during | | | | business to consumer (B2C), business to |
| the buying and selling of goods. The term is | | | | administration (B2A), business to employee |
| commonly used to refer to transactions where | | | | (B2E) or customer to customer (C2C). These |
| an actual payment has been made online via a | | | | classifications can be broken down into |
| credit card. But e-commerce also involves | | | | further sub-groups. For example, a B2B |
| other online activities such as marketing, | | | | activity could be a vertical e-marketplace |
| distribution and servicing of products over | | | | that offers goods or services to businesses |
| the Internet. Electronic commerce often | | | | within a specific industry segment. |
| relies on technologies such as e-mail and | | | | Alternatively, it could be a horizontal |
| enterprise resource planning applications for | | | | e-marketplace that offers services to |
| transaction completion and order fulfillment. | | | | businesses irrespective of industry segment. |
| | | | |
| The term e-business is usually | | | | E-commerce continues to grow in popularity |
| interchangeable with e-commerce. However, | | | | and a large amount of business is transacted |
| some definitions treat Electronic commerce as | | | | online every year. But it's worth noting that |
| a subset of e-business. In these cases, a | | | | it also presents many challenges for |
| clear distinction is made between | | | | governments and regulatory bodies, which can |
| transactions that involve the exchange of | | | | also affect your business. The United Kingdom |
| money online and those that don't. A | | | | has relatively clear Electronic commerce |
| transaction where a payment is made online is | | | | definitions and laws. But with its |
| defined as e-commerce. And e-business is used | | | | decentralised and complicated tax structure, |
| to refer to all non-fiscal online | | | | the United States still has a moratorium on |
| transactions that facilitate and support the | | | | new, multiple or discriminatory Internet |
| actual sale. | | | | taxes. In 2000, an advisory commission on |
| | | | e-commerce in the United States failed to |
| Electronic commerce can involve commercial | | | | reach a conclusive agreement on Electronic |
| activity between different interest groups. | | | | commerce taxation. |